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HACCP implementation and economic optimality in turkey processing

Author

Listed:
  • William E. Nganje

    (Morrison School of Management and Agribusiness, Arizona State University- Polytechnic Campus, Mesa, AZ 85212)

  • Simeon Kaitibie

    (International Livestock Research Institute, Nairobi, Kenya)

  • Alexander Sorin

    (Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND 58105)

Abstract

Regulatory impact assessment suggests that Hazard Analysis and Critical Control Points (HACCP) is a cost-effective food safety regulation that is highly beneficial to society. This study focuses on firm-level costs and benefits from adoption of specific critical control points. A stochastic optimization framework is used to determine optimal testing and sampling strategies for Salmonella reduction in turkey processing. Results show that under The Food Safety Inspection Service (FSIS) mandated tolerance levels, processors need to designate no more than five critical control points, three more than what is included in the generic HACCP plan. Moves to tighten tolerances should be considered carefully because additional implementation costs tend to increase exponentially. [EconLit Citations: Q18, D81, C61] © 2007 Wiley Periodicals, Inc. Agribusiness 23: 211-228, 2007.

Suggested Citation

  • William E. Nganje & Simeon Kaitibie & Alexander Sorin, 2007. "HACCP implementation and economic optimality in turkey processing," Agribusiness, John Wiley & Sons, Ltd., vol. 23(2), pages 211-228.
    • Handle: RePEc:wly:agribz:v:23:y:2007:i:2:p:211-228
    DOI: 10.1002/agr.20119
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    References listed on IDEAS

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    1. Antle, John M., 2001. "Economic analysis of food safety," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 19, pages 1083-1136, Elsevier.
    2. Buzby, Jean C. & Fox, John A. & Ready, Richard C. & Crutchfleld, Stephen R., 1998. "Measuring Consumer Benefits of Food Safety Risk Reductions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(1), pages 69-82, July.
    3. Knutson, Ronald D. & Cross, H. Russell & Acuff, Gary R. & Russell, Leon H. & Boadu, Fred O. & Nichols, John P. & Wang, Suojin & Ringer, Larry J. & Childers Jr, Asa B. & Savell, Jeff W., 1995. "Reforming Meat and Poultry Inspection: Impacts of Policy Options," Working Papers 258074, Texas A&M University, Agricultural and Food Policy Center.
    4. Golan, Elise H. & Roberts, Tanya & Salay, Elisabete & Caswell, Julie A. & Ollinger, Michael & Moore, Danna L., 2004. "Food Safety Innovation In The United States: Evidence From The Meat Industry," Agricultural Economic Reports 34083, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Julie A. Caswell & Helen H. Jensen, 2007. "Introduction: Economic measures of food safety interventions," Agribusiness, John Wiley & Sons, Ltd., vol. 23(2), pages 153-156.
    2. William E. Nganje & Linda D. Burbidge & Elisha K. Denkyirah & Elvis M. Ndembe, 2021. "Predicting Food-Safety Risk and Determining Cost-Effective Risk-Reduction Strategies," JRFM, MDPI, vol. 14(9), pages 1-18, September.

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